Google Android Tablet?

Following the release of Apple’s iPad, are Google working on their own tablet?

According to The New York Times, Google are working on a
tablet device that would exclusively run the Android operating
system.

In a story published on the website, The New York Times claim
that, at a recent party, Eric E. Schmidt, chief executive of Google
told friends about the new device. People “with direct knowledge of
the project” have apparently confirmed The New York Times’ story,
and added that Google has been exploring delivering content on a
tablet device.